SWOT Analysis of Venezuela and Kerala

SWOT Analysis of Venezuela and Kerala(S)trengths A natural endowment of the domains more or less demanded resource, namely petroleum. Huge reserves of crude oil color in the country. A boom in the oil price in the foreign market causes a flourishing of the Venezuelan parsimoniousness a rise in the employment esteem and the GDP of the country. It in like manner runs a current account surplus owing to the surplus receiptss earned from oil. The non-oil vault of heaven has also been growing at a steady and fast pace. pay and insurance has grown 258.4 per cent during the current intricacy, an bonny of 26.1 percent every year construction, which has grown 159.4 percent, or 18.9 percent annually trade and repair function (152.8 percent, or 18.4 percent annually) transport and storage (104.9 percent, or 13.9 percent annually) and communications (151.4 percent, or 18.3 percent annually). Manufacturing grew 98.1 percent during the expansion, or 13.2 percent per year.(W)eaknesses An overdependence on the oil industry often leads the economy to come crashing down in the strip of fox in oil prices. The constant political instability in the region leads to rapid policy changes and an overarching control of the military forces in personal and public spheres.(O)pportunities Foreign public debt is low, at about 9.8 percent of GDP. virtuoso payments for the next four eld atomic number 18 about $1.5 billion a year, which is very modest. wherefore Venezuela could also increase its borrowing internationally if necessary, alone it is utmost(prenominal)ly un standardizedly to encounter any balance of payments bothers. In the give of strong deflationary pressures, Venezuelas inflation is likely to continue fall in the near future.Challenges The main challenge for Venezuela in the next pair of age is to implement an trenchant stimulus package that can happen the economy on a steady growth path. Venezuela could make al-Qaida and other public investments t hat entrust increase productivity in the years that follow.(T)hreats Current concerns ar a weakening of democratic institutions, political polarization, a politicized military, drug-related violence along the Colombian b holy order, increasing internal drug consumption, overdependence on the petroleum industry with its price fluctuations, and irresponsible mining operations that are endangering the rain forest and indigenous races.Theoretical Lessons learnt from VenezuelaVenezuelan government revenue and oil revenue into the country are indivisible as it constitutes a major chunk of its GDP.A more balanced version of the enlarged Push model could facilitate other sectors to move forward like agriculture and industries, and this would lead to product diversification.Equitable distri only ifion and efficiency are positive functions of a balance between private and public undertakings. only if public ownership and maintenance fuels decadency and inefficiencies.KeralaKerala is loc ated at the grey tip of India and was formed in 1956. In terms of area, it constitutes only 1.275% of India it accounts for 33.3 one million million million of the total Indian population .i.e. 2.76% of the total. It is the third densest state in India but this camouflaged by plush green biodiversity.Like Venezuela, Kerala too is a resource-driven country, tradeing its ecology .This is in the form of tourism and also the export of primary products like coffee, coconuts and spices. Ecology plays an important role in the Kerala economy by providing a diversified natural resource base, enabling a large degree of occupational diversification.A comparison between Venezuela and Kerala.VariablesVenezuelaKerala longevityTotal population74.39 years male71.26 years female77.67 years (2014 est.)Total population 74 years. Male 71.67 yrs Female77.2 yrsAdult Literacy(2013)Total-84.1Female- 83.9%Male- 84.2%(2011)Total- 94%Female-century.76 %Male-96.11%Gross Enrolment Ratio(mainly primary give lessons)It was 103% in 2009-10, and dropped to 102% in 2011-12. This percent exceeds 100 due to the inclusion of over-aged and under-aged students because of early or late school inlet and grade repetition.100 % Gross Enrolment Ratio.GDP per capita12,729NA child and child mortality2009The child (below 5 yrs) mortality account was 17.5(a drop in rate as compared to previous years above 18 ratios), per cubic yard live births. The infant mortality rate was 15 per 1000 live births2005-06Child mortality rate is 16.3, and infant mortality rate is 15.3 per 1000 live births.Secondary school enrolmentSecondary school enrolment (% gross) was 83.48 as of 2011. Over the past 40 years this forefinger reached a maximum take account of 83.48 in 2011 and a minimum value of 35.15 in 1971.45% of the total population enters into gamyer secondary pedagogics.incidence on povertyThe policies of the Bolivarian Government has caused poverty to fall to 23% in 2009 from 70.3% in the second half of 199 6 accompanied by 40% of extreme poverty and a record inflation rate of 103%.The incidence of untaught poverty has declined in the 1980s in spite of the slow rate of growth of the economyMaternal mortality92 deaths/100,000 live births (2010) net maternal mortality rate in India. 66 deaths/100,000 live births (2010-12) tertiary Enrolment78% of the total population of the five-year age group pursuit on from secondary school leaving.Neglect on higher education. For example, in 1998-99, such a ratio is estimated to be 5.6 per cent in Kerala, compared to 5.9 per cent in the country as a whole on averageGini-coefficient for income diffusion0.4820.40HDI 0.748 0.625Kerala and Venezuela are similar on grounds of following a path towards very high GDP. However, as much as they pay been showing rapid development, an important issue which poses a huge problem for both economies is that of brotherly security threatened by Crime, and the widespread corruption.Presently, in 2013, after the dea th of President C askz, President Maduro took over, the Venezuelan economy has been experiencing corking shortages due to turmoil. Marginal Propensity to consume is very high presently in Venezuela due to high inflation and shortages. In Venezuela, growth in the money supply leads to inflation. This growth in money supply is caused by an almost near full employment level in the economy.There is high consumption in basic commodities such as milk, butter, coffee, cornmeal and potful paper. This shortage has been caused due to theState-controlled prices prices that are set below market-clearing price.Many factories operate at half capacity because the currency controls make it hard for them to pay for merchandise parts and materials. Business leaders say some companies verge on bankruptcy because they cannot extend lines of credit with foreign suppliers. In April 2013, Venezuelas scarcity forefinger reached its highest level since 2009, while the 12-month inflation rate has risen to nearly 30%. Shoppers often spend several days looking for basic items, and store up when they find them. Therefore, their Marginal propensity to save is extremely low.The protests have hit the streets, but are controlled in a very brainsick matter by the government and military loyalists of the government. There is a messiness of evil even among the police force. The basic freedom of speech is curtailed as the media is controlled by the President. Colectivos is the name given to gangs of thugs sponsored by the state to hush the opposition. Venezuela is declare to be the second most corrupt country, and is also the most crime ridden country in Latin America.In Kerala, Crime rate statistics in terms of offences coming under the ambit of the Indian Penal cipher during 2012 have put Kerala on top with 455.8 cases for every 1,00,000 persons. There is also corruption which permeates all sections of society.Policy Implications The first step toward decreasing the income distribut ion gap is to increase transparency of public monetary resource. When there is high corruption at the federal and state level, government revenues and expenditures may be miscalculated or misguided in order to swindle funds. Making sure that funds are leavely allocated and that federal assets and liabilities are properly recorded pull up stakes ensure soundness of the economy.Kerala is one of Indias most unequal states in terms of income inequalities, as 10% of Indias richest lives there. Therefore, Kerala can adopt from Venezuela the policies of social inclusion in order to attain a more trustworthy society. Other ways the government can decrease the number of people below the poverty is to reduce or eliminate the value-added tax ( bathing tub). The bathtub is a regressive tax on consumable goods and services at all stages of production. The VAT takes a larger proportion of a hapless persons income than the wealthy persons income. Decreasing the VAT will increase disposable i ncome and may stimulate consumption.There should be a constant check on poverty, as that can pant the economy down. In Venezuela, continuing to make sure that the Misiones are effective at increasing living standards will increase is important. The Misiones cannot be a publicity stunt in order for there to be a decrease in poverty, there must be an increase in the standard of living. Access to low-cost food, high-quality education, and healthcare should not be a privilege of the wealthy, but rather a standard for all.Higher (tertiary) education is developing in Venezuela, and is almost completely neglected in Kerala. Therefore there postulate to be policies in place to ensure the enhancement of this education. Increasing scholarships to go to a university will also stimulate growth. discipline will increase human capital and will lead to an expansion of the production possibility frontier. In order for education to be most effective for economic growth, curriculum should be up t o international standards. In order for there to be an increase in human capital, which will increase the production possibility frontier, universal quality education should be hand overd.Food shortages and inflation on food are also of international concern. In order to cherish the citizens from malnutrition and starvation, the government must continue to provide access to low-cost essential agricultural products. In order to protect the citizens from dropping below the poverty line, the government must increase domestic help production of agricultural goods.Since crime and corruption appears to be a universal problem faced by both these economic spaces, it is important that a stricter, rigid penal code be in place with its appropriate execution. When the law is strong, the judge of crimes drop.ConclusionVenezuela, a so-called leading Latin-American nation, has still a long way to go in order to transform completely into a developed nation. It needs a more deeply-entrenched str uctural and government change, most preferably a democracy. The current unequivocal government is creating an aura of fear for the people to live in, and the extreme collectivism is destroying industry and trade. Peoples basic and fundamental rights are universe compromised upon. Kerala, although one of the most developed states in India, still lacks in a few parameters. Higher education is completely neglected high rates of crime and murders widespread corruption, etc. Thus, policy needs to cater to these needs of the hour.